Latest news with #Shirzad
Yahoo
20-02-2025
- Business
- Yahoo
Coinbase Urges Congress To Transfer Spot Cryptocurrency Market Oversight to CFTC, Reducing SEC's Role
Coinbase has asked Congress to transfer authority over the spot cryptocurrency market to the Commodity Futures Trading Commission (CFTC), a move that could significantly limit the Securities and Exchange Commission's (SEC's) role in regulating digital assets. Faryar Shirzad, Coinbase's Chief Policy Officer, put forward a proposal that outlines six priorities for the crypto industry, the most important being the shift of oversight to the CFTC. According to Shirzad, digital assets like Bitcoin and Ethereum should be treated as commodities, not securities, and should fall under the CFTC's jurisdiction. He argues that the move would provide better transparency and consumer protections while reducing the risk of fraud and market manipulation. Currently, the SEC oversees crypto markets, but it has faced criticism from the crypto community, which argues that the SEC's approach is overly restrictive. The SEC's stance is that most cryptocurrencies, except Bitcoin, should be regulated as securities, a view made public by former SEC Chair Gary Gensler in 2023. Gensler also looked into whether Ether should be classified as a security but dropped the investigation. While the SEC maintains that many crypto assets fall under its purview, the crypto industry believes that the CFTC is better equipped to regulate these markets. The push for CFTC oversight aligns with the views of several Republican lawmakers, including Representatives Glen Thompson and Tom Emmer, who reintroduced the Digital Commodity Exchange Act in 2022. The bill aims to empower the CFTC to regulate the sector, a perspective also supported by former CFTC Chair Chris Giancarlo. In addition to shifting authority to the CFTC, Coinbase also advocates for SEC rules that would allow blockchain developers to raise capital without automatically classifying their tokens as securities. Shirzad believes that the SEC still plays an important role, particularly in setting clear guidelines for capital raising and ensuring fair access to opportunities for blockchain developers. He argues that venture capitalists have too much control over the crypto sector, pushing projects toward outcomes that disproportionately benefit them. According to Shirzad, such a system undermines the values of crypto, which is supposed to give everyone equal access to opportunities. The debate over regulatory oversight continues to evolve, with the CFTC gaining more support within the industry. The crypto space has long criticized the SEC for its heavy-handed approach, while the CFTC is seen as a more industry-friendly option for regulating digital assets. Additionally, reports have suggested that President Donald Trump is considering handing oversight of the crypto sector to the CFTC, which could mark a significant shift in U.S. policy toward cryptocurrencies.
The Hill
19-02-2025
- Business
- The Hill
Coinbase lays out legislation wish list
Cryptocurrency exchange Coinbase laid out its policy vision on Wednesday, urging Congress to pass legislation that gives clarity for the digital assets industry and protects consumers. The blueprint, written by Coinbase Chief Policy Officer Faryar Shirzad, breaks down what the exchange believes Congress should prioritize when crafting legislation. Shirzad issued a stark warning against inaction, suggesting the U.S. will fall behind on the global stage is 'thoughtful legislation' is not passed. 'Developers and businesses will seek opportunities abroad, and consumers will remain vulnerable to fraud and systemic failures,' Shirzad wrote, adding later, 'This is about more than regulating a new technology – it's about securing America's future in a rapidly evolving digital landscape.' The blog post comes as the Trump administration and various policymakers in Congress embrace the cryptocurrency industry after years of hostility from the Biden administration, which went after crypto giants like Coinbase. In an effort to turn the page in Washington, Coinbase poured millions into the 2024 race to elect pro-crypto candidates and already have their sights set on 2025 and 2026 races. Amid the tensions between the last administration and the industry has been a lack of regulatory clarity. Shirzad argued the unclear regulations have left innovators uncertain while exposing consumers to risk. 'Blockchain technology and digital assets are reshaping the global economy, bringing opportunities for innovation, financial inclusion, and economic growth,' Shirzad wrote. 'Yet, the absence of clear legislation in the United States stifles this potential, leave consumers exposed, and drives innovation overseas.' Coinbase's legislation wish list includes measures that will clearly define digital assets to help Americans distinguish between securities, commodities and other tokens, along with creating clear rules on how developers can raise capital for blockchain projects without every token being considered a security. One of the most notable asks from Coinbase is to give the Commodity Futures Trading Commision (CFTC) oversight of crypto spot trading, where assets are bought and sold for immediate delivery. By empowering the CFTC, Shirzad said this will ensure transparency and protect 'consumers from fraud and manipulation.' Coinbase also called for a stablecoin framework and the protection of decentralized finance (DeFi) and digital commerce platforms, stating the latter must be free from 'burdensome regulation.' 'Stablecoins play a critical role in the digital economy by bridging crypto and fiat currencies,' Shirzad wrote. 'Legislation should ensure stablecoins are safe, fully backed and transparent while fostering competition and innovation in the marketplace.'
